Share price of Bharti Airtel Ltd. declined over 1% on Monday, after the Karnataka Department of Telecommunications imposed a penalty on the telecom firm.
The DoT has issued a notice to the telecom giant on Saturday, alleging violations of subscriber verification regulations. The penalty, amounting to Rs 2,18,000, comes after a Sample Customer Application Form Audit, conducted by the DoT in October 2024, revealed irregularities in the company's subscriber verification process.
The CAF is a crucial document that customers fill out to provide personal and subscription details. The audit found that Bharti Airtel did not meet the verification standards outlined in its License Agreement, which are designed to ensure the accuracy of subscriber information and prevent fraudulent activity.
The DoT's strict verification guidelines are also aimed at enhancing national security by ensuring that telecom operators comply with regulatory norms.
The news comes after a positive performance for Bharti Airtel's stock. Last week, the company saw its share price rise by nearly 5%, hitting a seven-week high after a block deal was executed on the exchanges. Over 13.2 lakh shares were sold in the block deal, though the identities of the buyers and sellers remain undisclosed. Prior to the penalty news, Bharti Airtel shares had been on an upward trajectory.
Additionally, the telecom giant benefited from positive analyst sentiment, with Jefferies including Bharti Airtel in its list of top stock picks from India.
Bharti Airtel Share Price Today
Bharti Airtel shares fell as much as 1.20% before paring some loss to trade 1.13% lower at Rs 1,662.80 apiece, as of 10:47 a.m. This compares to a 0.36% decline in the NSE Nifty 50.
The stock has risen 67.92% in the last 12 months. Total traded volume so far in the day stood at 0.25 times its 30-day average. The relative strength index was at 59.
Out of 35 analysts tracking the company, 29 maintain a 'buy' rating, four recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 8.6%.
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